The government has ruled out a supplementary budget this year but is determined to utilize all available state-run funds to stimulate the economy.
Unnamed government officials told reporters that some 10-trillion won, or around 10 billion U.S. dollars, will be injected into the economy from public funds this year.
Details have yet to be released, but officials say the National Housing Fund, which accounts for 9 percent of some 500 billion dollars of funds run by the government this year, will play a major role in bolstering the real estate market.
As a way to generate more construction activity, the government will also guarantee greater profits to companies taking part in infrastructure projects.
To press companies to avoid hoarding excess cash and to increase investments, the government is considering levying taxes for cash reserves exceeding a certain limit.
The government, on the other hand, says it will grant tax breaks and other incentives to companies going public or offering higher dividends.
A comprehensive policy package designed to stimulate domestic demand will be released next week.
Song Ji-sun, Arirang News.